IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6^TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 39407 OF 2025 (GM-POLICE)

BETWEEN:

MUTHOOT FINANCE LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 HEAD OFFICE AT MUTHOOT CHAMBERS, OPP SARITHA THEATRE COMPLEX, BANERJEE ROAD, KOCHI 682018 HAVING ONE OF ITS BRANCH AT -

VALMIKE CIRCLE BRANCH, KALYANDURGA TOWN, ANANTHAPUR DIST. ANDHRA PRADESH.

REP BY ITS AUTHORIZED OFFICER/MANAGER Digitally AJUMON P GEORGE signed by VANAMALA N Location: …PETITIONER HIGH COURT OF (BY SRI. ANISH JOSE ANTONY, ADVOCATE)

KARNATAKA AND:

1. STATE OF KARNATAKA BY ITS SECRETARY, HOME DEPARTMENT, VIDHANA SOUDHA, BENGALURU- 560 001

2. THE CIRCLE INSPECTOR OF POLICE/INVESTIGATION OFFICER MOLAKALKURU CIRCLE, CHITRADURGA DIST., KARNATAKA STATE …RESPONDENTS (BY SRI. B. RAVINDRANATH, AGA)

THIS WP IS FILED UNDER ARTICLES 226 AND

227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT THE INTERFERENCE BY THE RESPONDENTS IN PETITIONER BUSINESS FOR FORCEFULLY SEIZING THE GOLD ARTICLES PLEDGED BY IT COSTUMERS WITHOUT FOLLOWING THE PROCEDURES UNDER SECTION 107 OF BNSS, 2023 IS ARBITRARY AND IS IN VIOLATION OF FUNDAMENTAL RIGHTS GUARANTEED UNDER ARTICLES 19(1)(G) AND 21 AND THE CONSTITUTIONAL RIGHTS GUARANTEED UNDER ART 300A OF THE CONSTITUTION OF INDIA 1950; ISSUE A WRIT OF MANDAMUS TO THE 2ND RESPONDENT TO FOLLOW THE PROCEDURES UNDER SECTION 107 OF BNSS 2023, IN THE EVENT THE 2ND RESPONDENT INTENDENT TO SEIZE THE GOLD ARTICLES FROM THE PETITIONER FROM ANY BRANCHES WITH REGARDS TO CRIME NO. 94/2025, 98/2025, 114/2025 AND 118/2025 REGISTERED BY 2ND RESPONDENT POLICE IN THE INTEREST OF JUSTICE AND EQUITY.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

ORAL ORDER

The petitioner is a Non-banking Financial Company registered under the Reserve Bank of India and is licensed to conduct business as such. The Circle Inspector of Police, Molakalkuru Circle, Chitradurga District has called upon the petitioner to freeze the accounts belonging to a certain set of borrowers who have pledged gold ornaments stating that these accounts must be frozen because of pending criminal proceedings.

2. The petitioner is not aggrieved by this notice, but as canvassed by Mr. Anish Jose Antony, the learned counsel for the petitioner, the petitioner's cause for the present petition is the apprehension that the Circle Inspector of Police will seize the pledged gold ornaments. The learned counsel submits that these ornaments cannot be seized without recourse to the provisions under the Bharatiya Nagarik Suraksha Sanhita, 2023 [BNSS].

3. Mr. Anish Jose Antony relies upon this Court's order dated 18.09.2025 in W.P. No.27479/2025, to contend that in similar circumstances, this Court has recorded that if there is to be any seizure, it must be upon due compliance with the procedure contemplated under Section 107 of the BNSS and with a reasonable opportunity to the petitioner to avail remedy under Section 497 thereof. Mr. Ravindranath B, the learned Additional Government Advocate, who is called upon to accept notice for the respondents, is heard in the light of the circumstances.

4. There cannot be restraints on the second respondent to seize the pledged gold ornaments if that comes across as necessary during the investigation, but the second respondent cannot dilute the seizure permitting the complainants to take the same. The petitioner must be at liberty to avail remedy to secure interim custody of the ornaments on terms as may be deemed necessary and proper by the competent court. The petition stands disposed of by the following:

ORDER

a. The second respondent [the Circle Inspector of Police, Molakalkuru Circle, Chitradurga District], shall proceed to seize the pledged gold ornaments [in terms of Annexure - C], if warranted only in accordance with the procedure contemplated under Section 107 of the BNSS.

b. The second r